- Cohiba Minerals (CHK) signs a farm-in agreement with Tigers Dominion Group to earn a 51 per cent interest in the Warriner Creek Project in South Australia
- The company will spend $3 million on exploration within a 24-month period under stage one of the agreement
- Initial exploration includes drilling two holes at the project to assess its prospectivity
- Cohiba considers this to be a strategic opportunity to establish itself as one of the premier iron oxide copper-gold explorers in the Gawler Craton region
- Company shares are up 2.86 per cent to trade at 1.8 cents
Cohiba Minerals (CHK) has signed a farm-in agreement with Tigers Dominion Group regarding the Warriner Creek Project in South Australia.
Under the farm-in, Cohiba has the right to earn up to a 51 per cent interest in the project by spending $3 million on exploration within 24 months under stage one.
Prior to this, there’ll be an initial period of 12 months which will assess the project’s prospectivity. Cohiba will need to spend at least $600,000 (inclusive under the $3 million) on exploration. Planned activities includes drilling a 600-metre hole on one tenement and a 400-metre hole on the other tenement.
To commence its stage one commitment expenditure, Cohiba will need to pay up to $500,000 in stage one licence fees. It will also need to pay $250,000 to form a joint venture (JV) and a further $200,000 in JV licence fees.
The Warriner Creek Project comprises two exploration licences which cover a combined 346 square kilometres over strategic iron oxide copper-gold (IOCG) targets in the Gawler Craton.
Cohiba believes the project presents an attractive, low risk option to further its strategy of exploring in the highly prospective Gawler Craton region.
CEO Andrew Graham was pleased to have entered the farm-in deal.
“For some time the company has been reviewing a number of possible opportunities in relation to expanding its presence in the Gawler Craton and establishing itself as one of the premier IOCG explorers in the region,” Mr Graham said.
“The Warriner Creek Project presented itself as a strategic opportunity and, following significant investigation, it was determined that this project would greatly complement the company’s existing IOCG portfolio.”
The company also remains focussed on exploration at the Horse Well, Pernatty C and Lake Torrens projects within the Gawler Craton.
As of June 30, Cohiba Minerals had a cash balance of $6.5 million which will be used to fund exploration.
Company shares were up 2.86 per cent to trade at 1.8 cents at 11:35 am AEST.